After being rumored last week, CNBC has reported this morning the FTC has officially announced the approval of Facebook’s $5 billion fine after getting the green light from the Justice Department and the FTC’s commissioners voting 3-2 in favor of the penalty.The SEC also announced today that Facebook will pay a separate $100 million fine for misleading investors about the risks of misued user data. The former fine is roughly 9% of the company’s revenue from last year which makes it a slap on the wrist. But I am sure that Facebook clearly felt that this was the best way to make their legal issues go away.
But it’s not all clear sailing for Facebook. The deal will require the company to set up an independent privacy committee on its board to reduce Mark Zuckerberg’s “unfettered control” over user privacy decisions. The deal will also require Zuckerberg and others at Facebook to do quarterly and yearly certifications with the FTC to ensure they are following the agency’s privacy rules. Additionally, there will be an independent assessment every other year. This is something at least that may moderate Facebook’s rather craptastic behavior.
Now the deal will still need to be finalized by the Justice Department. And given their investigation that was announced yesterday, it could change. But I don’t see that happening. And Facebook’s are over. At least until the next time they get themselves into trouble.
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This entry was posted on July 24, 2019 at 10:36 am and is filed under Commentary with tags Facebook. You can follow any responses to this entry through the RSS 2.0 feed.
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Facebook Fined $5 Billion By The FTC & $100 Million By The SEC For Their Bad Behavior.
After being rumored last week, CNBC has reported this morning the FTC has officially announced the approval of Facebook’s $5 billion fine after getting the green light from the Justice Department and the FTC’s commissioners voting 3-2 in favor of the penalty.The SEC also announced today that Facebook will pay a separate $100 million fine for misleading investors about the risks of misued user data. The former fine is roughly 9% of the company’s revenue from last year which makes it a slap on the wrist. But I am sure that Facebook clearly felt that this was the best way to make their legal issues go away.
But it’s not all clear sailing for Facebook. The deal will require the company to set up an independent privacy committee on its board to reduce Mark Zuckerberg’s “unfettered control” over user privacy decisions. The deal will also require Zuckerberg and others at Facebook to do quarterly and yearly certifications with the FTC to ensure they are following the agency’s privacy rules. Additionally, there will be an independent assessment every other year. This is something at least that may moderate Facebook’s rather craptastic behavior.
Now the deal will still need to be finalized by the Justice Department. And given their investigation that was announced yesterday, it could change. But I don’t see that happening. And Facebook’s are over. At least until the next time they get themselves into trouble.
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This entry was posted on July 24, 2019 at 10:36 am and is filed under Commentary with tags Facebook. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.